What is a Home Equity Loan?
Do you want to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? With a home equity loan, a fixed or adjustable rate loan is secured by the equity in your home. You borrow a sum of money to be paid back monthly during a set period of time, much like your original mortgage loan. The terms "home equity loan" and "second mortgage" are often used interchangeably.
Getting the Loan
You'll be comfortable with the process as it is a lot like getting your current mortgage. Your closing costs (often two to three percent of the loan amount) are usually lower and, although your rate of interest is more on a home equity loan, the interest paid can be tax deductible.
In order to qualify for a second mortgage, your credit needs to be in good standing and you must be able to document your salary. A home appraisal is necessary to calculate the home's current market value. To check on your home equity loan choices, call us at 8102292820.
Have questions about your home equity? Call us at 8102292820. We answer home equity loan questions questions every day.